Hotel woes only hurdle long term

The latest episode of the drama that is downtown Stockton's comeback involves the beautiful Sheraton Hotel on the waterfront. It's struggling.

Michael Fitzgerald

The latest episode of the drama that is downtown Stockton's comeback involves the beautiful Sheraton Hotel on the waterfront. It's struggling.

The new hotel, which has not paid many of its bills, is caught in the national credit squeeze. The bank or banks that loaned it money reportedly cut further loans.

Permanent financing cannot be found. Sales of the condominiums atop the hotel, which were supposed to make money, are nil in this housing market.

The Sheraton could go under.

As it owes at least $8.9 million to 26 companies, many of them local, bankruptcy could involve partial payment - or no payment - of those debts.

The Sheraton was given prime waterfront land for $1 and a $500,000 taxpayer subsidy to boot. This community believed in the Sheraton.

But the Sheraton - or Regent Development - believed in this community, too. It invested $61.5 million in a component essential to the success of redevelopment as a whole.

The building is there. It will not run away. Ownership may change, ditto the management team, but the hotel is here to stay. One day it will flourish.

"Hotels are critical to everything else we want to do downtown," said Redevelopment Director Steve Pinkerton. "Hoteliers bring in money from the outside."

Tourists and business travelers spend up to 10 times as much money as locals do, Pinkerton claimed. "That's like bringing a couple thousand housing units in."

Regent's owner may argue for city financial support. One argument being he cannot pay his debts to locals if he goes under. The city should resist this argument. Its job was to seed the project, not to insure its profits.

There is enough public disapproval of redevelopment as it stands. Too much, in my opinion. The public has been tolerably well-served by its investments.

Ports fans have a great ballpark, Thunder fans have a passionate new sport, and movie fans have one of the most successful multiplexes in the state.

For every unpopular deal, such as the Paragary's subsidy, there is something like the interactive water fountain at Weber Point that all Stocktonians enjoy.

The problem is the overall effort suffered two setbacks: the transition of administrations in City Hall to slow-going leaders with different priorities and the credit crunch.

The worthy campaign to restore downtown Stockton's economic health and urban pizzazz is stalled. But not stopped, as the shortsighted claim.

Construction on the waterfront marina and promenade is expected to begin by August. The recession will lift. In the foreseeable future, people will live and work downtown.

Until then, the public should keep the faith with urban renewal in principle and support the Sheraton. And Regent should remain worthy of the public trust.